I. Project 3: Financial Statement Analysis Project

I. Project 3: Financial Statement Analysis Project

II. Introduction:

 

This project is designed to assess your ability to interpret and analyze financial statements, and make a presentation to a boss and colleagues.

You recently graduated Summa Cum Laude with a MS in Accounting and Financial Management from a state university. Your role is to be a financial analyst for a large brokerage firm. Your boss (the professor) asks you to prepare a financial analysis for two retail companies. Your analysis will be part of a company-wide analysis of the retail business sector in the US. You will present your analyses to your boss and colleagues (classmates).

III. Steps to Completion:

Step 1: Research

Select any two U.S. corporations that are listed on the New York Stock Exchange (NYSE) in the retail sector.  Click Edgar to search for the SEC filings of your chosen retail corporations.  Download and review the SEC Form 10-K for the most recent year.

Step 2: Analysis

· If you are unfamiliar with the corporations you selected, learn more about each company by reading Part I of its SEC Form 10-K. To further your understanding, conduct Web research on your corporations.

· Perform horizontal and vertical financial statement analyses in Excel (using formulas)

· Perform ratio analysis in Excel (using formulas)

Step 3: Prepare deliverables

· Audio-enhanced PPT presentation with accurate transcription (or accurate Closed Captioning) for your boss and colleagues

· Include a recommendation to either hold, sell, or buy more stock from the corporations you chose to analyze.

· Also include a comparison of the two companies using the trend analysis you conducted in Step 2.

 IV. Deliverables:

1. An SEC Form 10-K for each corporation used for the analyses

· Highlight figures on the Form 10-K’s that you used in your analyses

2. One Excel workbook with 3 tabs (worksheets):

· Horizontal analysis

· Vertical analysis

· Ratio analysis

Note: all computations must be computed via an Excel formula

3. Audio-enhanced Power Point presentation with accurate transcription (or accurate Closed Captioning)

4. One-page Word document summarizing your analyses and justification for recommending hold, buy, or sell for the two companies.

V. Hints and Tips:

· Review and refresh your memory of APA style formatting 3-4 weeks before the assignment is due.

· Writing a Research Paper: https://owl.english.purdue.edu/owl/resource/658/01/

· APA: https://owl.english.purdue.edu/owl/section/2/10/

· Developing your graduate level writing skills: https://owl.english.purdue.edu/owl/section/1/2/

· What Constitutes Graduate Level Writing; source unknown. In LEO, Content, Week 9.

· Prepare a draft version of your report 2 weeks before it is due.

· Ask a classmate, friend or family member to read your report before submitting it to the Graduate Writing Center.

· Submit your draft to the Graduate Writing Center at least 1 week before the project is due. This FREE resource can be accessed in your LEO classroom.

· Make edits to your report after reviewing feedback from the writing center tutors.

· Submit the memorandum on or before the due date.

· Ask your professor questions as needed.

VI. Rubric:

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Excel	Exceeds Performance Expectations 13.5 points	Meets Performance Expectations 12 points	Does Not Meet Performance Expectations 0 points
Correct format	The formatting of the cells, graphs, tables, overall report, statement, etc. are easy to read and understand. Cells requiring labeling are properly labeled. Number of sheets is in alignment with assessment instructions. The work has a professional appearance.	The formatting of the cells, graphs, tables, overall report, statement, etc. are mostly easy to read and understand. Some cells requiring labeling are properly labeled. Number of sheets is less than or greater than the requirements of the assessment. The work has a somewhat professional appearance.	The formatting of the cells, graphs, tables, overall report, statement, etc. are not easy to read and understand. Some cells requiring labeling are properly labeled. Number of sheets is excessively more or less than the requirements of the assessment. The work appeared unprofessional. Or did not submit.
Accuracy of numbers	All numbers on the are accurate. Currency figures have currency symbols in the correct cells only. The number of decimal places is appropriate given the numbers.	Most of the numbers on the work are accurate. Currency figures have currency symbols in the correct cells and some incorrect cells. The number of decimal places may be appropriate given the numbers.	Most of the numbers on the work are inaccurate. Currency figures have currency symbols in almost all cells. The number of decimal places may be appropriate given the numbers. Or did not submit.
Accuracy of formulas	Chooses the correct formula and uses formulas to compute values on the worksheet(s). All formulas are correct. The use of advanced Excel functions is confirmed by the formulas. Formulas are used across multiple sheets when appropriate.	Mostly chooses the correct formula and uses formulas to compute values on the worksheet(s). Some of the formulas are correct. The use of advanced Excel functions cannot be confirmed by the formulas. Formulas are used across multiple sheets when appropriate.	Mostly chooses the correct formula and uses formulas to compute some values on the worksheet(s). Some of the formulas are correct. The use of advanced Excel functions cannot be confirmed by the formulas. Formulas are not used across multiple sheets when appropriate. Or did not submit.
Tables, graphs, Smart-art, etc.	Tables, graphs, and smart-art are used to graphically represent cell data. Formatting of tables, graphs, and smart-art appears professional and contributes to creating a deep understanding of the quantitative data.	Tables, graphs, and smart-art are used to graphically represent cell data. Selection and formatting of tables, graphs, and smart-art appears somewhat professional and somewhat contributes to understanding the quantitative data.	Tables, graphs, and smart-art are used, but not to a great extent. Selection and formatting of tables, graphs, and smart-art appears unprofessional and does not contribute to understanding the quantitative data. Or did not submit.
Presentation	Exceeds Performance Expectations 6.75 points	Meets Performance Expectations 6 points	Does Not Meet Performance Expectations 0 points
Content of Presentation	Information on the face of slides is accurate and relevant, and all academic references are included where necessary and per APA guidelines.	Information on the face of the slides is mostly accurate and relevant with only a few minor errors; all academic references are not presented and or not in APA format.	Information on the face of the slides is inaccurate and or irrelevant; academic references are not provided or not in APA format. Or did not submit.
Organization of Presentation	Slide sequencing is logical and tells "a story" that walks the audience through explanations, steps in a process, or other dimensions of the presentation.	Slide sequencing is mostly logical and tells "a story" that walks the audience through explanations, steps in a process, or other dimensions of the presentation.	Slide sequencing is illogical.  The slides may tell a story, but not in an organized manner.   Or, did not submit.
Notes to the Slides	Notes are presented on all slides and match the audio perfectly.	Notes are presented on most of the slides and match the audio for the most part.	Notes are not presented on most of the slides and they do not match the audio for the most part. Or did not submit.
Audio Enhancement	Audio file is clear and without any static.  Speaker enunciates clearly, uses full sentences, and speaks at a reasonable pace throughout the presentation.  The timing of the presentation fits the requirements of the project. The quality of the audio suggests it was rehearsed.	Audio file is clear and without static for the most part.  Speaker enunciates clearly, uses full sentences, and speaks at a reasonable pace for most of the presentation.  The timing of the presentation may be 1 minute too short or too long.	Audio file is not clear and may contain static. The speaker is difficult to understand, may speak too slowly or too fast for most of the presentation.  The timing of the presentation may be 2 or more minutes too short or too long.  Overall, the presentation is not polished nor professional.  Or, did not submit.
Word	Exceeds Performance Expectations 9 points	Meets Performance Expectations 8 points	Does Not Meet Performance Expectations 0 points
Writing Competencies	Clear, correct, and concise use of English grammar with no spelling or punctuation errors. Employs professional writing without colloquial language. Organization is easy to follow and congruent with graduate level writing skills.	Clear, correct, and concise use of English grammar with some spelling and or punctuation errors. Employs professional writing with some colloquial language. Organization is not easy to follow but the submission is written at the graduate level.	Confusing, incorrect, and or wordy use of English grammar with many spelling and or punctuation errors. Employs unprofessional writing with a significant amount of colloquial language. Organization is not easy to follow and the submission is not written at the graduate level. Or did not submit.
Overall Score	Exceeds Performance Expectations 90 or more	Meets Performance Expectations 80 or more	Does Not Meet Performance Expectations 0 or more

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